By L. Tierney | WatchdogWire.com
OUCH: Taxpayers send an awful lot of their incomes to states just to pay the bills.
New Jersey’s new fiscal year began with a loan.
According to the state Treasury Department said that on July 1, New Jersey received a $2.6 billion loan from J.P. Morgan, the first day of the new state budget.
It’s common for states to take out bridge loans like this to manage cash flow. The problem is that this loan adds yet another item in the debt column – a debt burden that is already overwhelming state residents.
The nonprofit group Truth In Accounting estimates New Jersey taxpayers owe 63 percent of average income for state expenses. It calculates Per Taxpayer Burden – remaining debt after available assets are tapped – for all 50 states. Much of this debt is retirement contributions not paid each year, as part of employee compensation.